Tech World: GMX Resources Posting Record Sales Growth Numbers
July 29, 2008
GMX Resources (GMXR) engages in the acquisition, exploration, and development of properties for the production of crude oil and natural gas in Texas, Louisiana, and New Mexico. The company has proved reserves of 258,403 million cubic feet of natural gas equivalent and 95.8 net producing wells. It also has a joint development agreement with Penn Virginia Oil & Gas, L.P. for the development of properties in Carthage, North Field. The company was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.
GMX recently today announced that it intends to commence a public offering of 2 million shares of its common stock. The company intends to use a substantial portion of the net proceeds from the offering to temporarily repay outstanding indebtedness under its revolving bank credit facility. The balance of the net proceeds will be used to fund the development of oil and natural gas properties, acquisitions of additional properties and for general corporate purposes. The company also anticipates reborrowing under its revolving bank credit facility from time to time for the same purposes.
The common stock will be offered pursuant to an effective registration statement filed with the Securities and Exchange Commission. GMX intends to grant the underwriters a 30-day option to purchase a maximum of 300,000 additional shares of its common stock.
GMX has stellar fundamentals with impressive sales growth and continued earnings growth. The company has annual sales of more than $68 million, and in percentage terms has a sales growth rate of over a whopping 113 percent per year.
The stock is in an Elliott Wave-4 buy formation, projecting gains into the $101 per share area over the next 3 months. The company does have a liquid options market that include LEAPS currently extending out to January of 2010, allowing the options strategist more than enough time to trade this opportunity.
Figure 1: Daily Elliott Wave-4 Buy Pattern for GMX Resources
(Source: Profit Source)
Happy Trading.
Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum
Listen to Jeff at www.ProfitStrategiesRadio.com
Email This Article
View Full HTML
Digg This
Delicious
Subscribe© Copyright 1995-2009 Optionetics. All rights reserved. This material is for personal use only. Republication and re-dissemination, including posting to newsgroups, is expressly prohibited without the prior written consent of Optionetics. Optionetics is a registered trademark of Optionetics, Inc.